What is an ounce of gold?
Ounce of gold: weights and measures of gold
The price and value of many precious objects are determined in grams and kilograms. However, the yellow metal is expressed in terms of the ounce of gold. This ounce is roughly equivalent to 31.10 grams and determines the real-time value of all gold objects. If you’re planning to buy or sell precious metals, it’s very important to understand the units of measurement used. Let’s take a look at the weight of an ounce of gold and its impact on the price of gold!
Definition of an ounce of gold
The ounce is a measure of weight used before the invention of the metric system. Some countries still use it today. Approximately, this unit of measurement lies between 24 and 33 grams.
To facilitate trade, the troy ounce has been standardized to 31.10 grams. This is how it is used on the gold markets, notably the London Bullion Market (LBM). In the eyes of many savers and investors, this precious metal remains the “gold standard”. safe-haven asset par excellence.
The gold price always refers to the price per ounce of gold. This price is then quoted in euros, pounds sterling, dollars, yen (etc.) for integration into international markets. To speak of the quotation of an ounce of gold is to speak of the reference value used worldwide to estimate the value and price of this precious metal.
The official estimate is set by the London Bullion Market Association, although this official quotation has not existed in France since 2004. Gold remains a commodity whose price can rise or fall according to supply and demand, but its price has tended to rise for several decades, hence its reputation as a safe-haven asset.
How much does an ounce of gold weigh?
The weight of an ounce of gold is approximately 31.1 grams. This measurement is based on the troy ounce, a unit of measurement traditionally used for precious metals. The weight of an ounce of gold is an essential element in determining its price. Thus, for the same purity rate, the value varies according to the weight of the gold, whether in bullion coins or bars. For example, a 24-carat ingot will have a different price depending on whether it weighs one kilogram or just 5 grams.
Gold-buying experts use precise scales, regularly checked and certified by the relevant authorities. The London Bullion Market Association sets the daily price of gold according to international supply and demand.
The importance of weight when buying gold
When buying gold, the weight of the ounce is a crucial factor, as it directly determines the value of the investment. Gold coins and bars are the most common forms of gold purchase. The most common coin is the Krugerrand, while bullion is available in a range of sizes (from ingots weighing just a few grams to larger ingots).
Agencies specializing in gold sales, such as Les Métaux Précieux, often offer a wide range of products, including historic coins such as the Napoleon in francs.
The price of gold is generally referenced to the spot market, which varies according to global supply and demand. Consequently, the weight of gold purchased, whether for redemption or sale, has a direct impact on the amount invested and the potential return on investment. It is advisable to consult the current quotation system, often expressed in troy ounces or pounds, to determine the current value of gold.
Gold ounce: what is its price?
The price of an ounce of gold is quoted on the stock exchange. That’s why it can fluctuate at any time. During the Covid-19 pandemic, the ounce reached 1944.70 dollars in July 2020. In June 2023, an ounce of gold traded for 1,820 euros.
To obtain the net price of your gold bullion or gold coin, simply multiply the cost per ounce by the weight of your gold. To find out the price of gold in real time at any time, LMP provides a live webcast, so don’t hesitate to consult it.
How to invest in gold?
Now that you know more about the weight of an ounce of gold, how do you invest in this precious metal? If you want to make a gold investmentYou can choose between physical gold and paper gold:
- Physical gold: ingots and coins.
- Paper gold: these are securities and shares, and therefore investments on the financial markets, which guarantee their value on gold.
Bullion bars weigh an average of 1 kilogram, while ingots, bullion coins and mini gold barsweigh the equivalent of one ounce of gold. Micro-bars are also available to meet the needs of investors with low savings.
For thebuying and selling goldWe advise you to contact an expert near you. Precious metals have two branches in the 12 and 15th arrondissements of Paris to support you in all your projects.
Les Métaux Précieux’s team of professionals is at your disposal to guide and advise you in the field of investment gold. We can provide you with detailed information and personalized support for the purchase of ounces of gold, whether in coins or bars.
Benefit from valuable advice, buy or sell at the right price according to the real-time gold price. Gold, silver, platinum: trust us to buy or sell precious metals 100% reliably and securely!
Gold ounce vs carat, what’s the difference?
The weight of the ounce of gold and the carat are two different units of measurement used in the world of gold, but they are used to measure different aspects. The gold ounce, specifically the troy ounce, is used to measure the weight of gold. It is widely used in the gold trade (notably for bars, ingots and coins such as the Krugerrand) and in market pricing. As previously mentioned, a troy ounce ingot weighs around 31.1 grams.
In contrast, the carat is a measure of gold purity, used mainly for jewelry. Pure gold is referenced at 24 carats, meaning that gold makes up 100% of the alloy. Gold jewelry is often made from alloys to improve durability, resulting in lower carat values. For example, 18-carat gold jewelry contains 75% gold and 25% other metals, such as silver.
Our experts are at your disposal to help you choose the option best suited to your budget and investment objectives. If you have any questions about an ounce of gold (price, weight, buying or selling), don’t hesitate to contact us!